The functions or duties of Management Auditor can be explained in brief as given below:
1. The management auditor helps the management in the preparation and execution of plans and policies. His job is not that of fault-finding of the management but he should point out the weaknesses and defects with the sole objective of making the management more dynamic in future.
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2. He assists the management in taking the best decisions which are very vital for the smooth running of a business. Wrong and faulty decisions amount to a great loss to the business and sometimes jeopardise the basis on which the business functions.
3. He helps the top management in designing the authority and delegating the responsibilities to every core of the managerial cadre in the organization. The defects in the channels of communication can be removed and friction avoided if the responsibility area is well defined. The management auditing can ensure it.
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4. The management auditor can assist in strengthening the business communication system inside and outside the business. He can recommend and advice the most suitable system of communication to devise a very healthy and democratic system of flow of information internally and externally.
5. He can recommend to the management the best measures and devices for evaluating the performance of the business. As a result, its operations can be improved and the profits maximized.
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6. He can help the management in the preparation of tax plans and budgetary policies. He appraises the Tightness of different information and data and thus, helps the management in preparing sales budget, purchase budget, cash and capital budget, etc.